Fortune Scrip     

Published: October 31, 2026
Updated: October 31, 2026

Gravita India

Unique Indian MNC in lowly recycling business

For this fortnight, we have selected a company that is unusual in that it does not belong to a ‘standard’ industry segment. However, it has remarkable growth potential. Listed on NSE and BSE, it is a multi-bagger stock with prospects of scaling further highs.

Gravita India, headquartered in Jaipur (Rajasthan), was promoted by first-generation entrepreneur Rajat Agrawal way back in 1992. Today, it is a prominent global player in the recycling industry, specialising in recycling of lead, aluminium, plastic and rubber. This integrated recycling company is focused on building sustainable and efficient material recovery ecosystems. During the 34 years of its existence, it has grown into a diversified, multinational recycling entity with operations across Asia, Africa and Europe.

Its state-of-the-art lead processing unit at Jaipur carries out smelting of lead ore/lead concentrate/lead battery scrap to produce primary and secondary lead metal which is transformed into pure lead, specific lead alloy, lead oxides (sub-oxide), red lead and litharge, and lead products (lead sheets, lead pipes, etc.).

PERFORMANCE INDICATORS (Rs. in crore)

Beside Jaipur, the company operates advanced recycling and manufacturing facilities at Kathua (Jammu & Kashmir), Mundra (Kutch, Gujarat) and Chittoor (Andhra Pradesh), as well as units in Romania, Ghana, Mozambique, Togo, Senegal, Tanzania and Sri Lanka. The company has a strong global procurement network, and serves customers in more than 70 countries.

RECYCLING PROJECTS

Gravita’s core business spans lead battery recycling, aluminium alloy manufacturing, plastic recycling and waste tyre recycling. Its product portfolio includes specialised lead alloys, plastic granules, recovered carbon black and tyre pyrolysis oil (TPO). The company has also executed 70 turnkey recycling projects globally, offering end-to-end solutions from design and engineering to commissioning.

As part of its strategic expansion, Gravita has launched a dedicated lithium-ion battery recycling plant at Mundra (Kutch, Gujarat). The company has also signed a binding agreement to acquire a majority stake in Rashtriya Metal Industries Ltd (RMIL), thus strengthening its presence in non-ferrous metals.

During the last 13 years, its sales turnover has shot up more than eight times from Rs 501 crore in fiscal 2015 to Rs 4,265 crore in fiscal 2026, with operating profit spurting almost 22 times from Rs 20 crore to Rs 439 crore and the profit at net level zooming almost 38 times from Rs 10 crore to Rs 378 crore. The company’s financial position is extremely strong, with reserves at the end of March 2026 standing at Rs 2,437 crore – over 162 times its tiny equity capital of Rs 15 crore.

REVENUE SURGE

But we have not picked Gravita as the Fortune Scrip on account of its past laurels. We are confident that prospects for the company going ahead will be even more promising. Consider:

• After turning out a heart-warming performance till fiscal 2026, the company has started the new year (fiscal 2027) on a bullish note with revenues in the first quarter (April-June 2026) rising 41.8% to Rs 1,475.06 crore, as compared to Rs 1,039.94 crore in the corresponding quarter a year ago. And the consolidated net profit during the quarter under review rose 14.3% YoY to Rs 106.37 crore. The increase in the lead recycling capacity at the Phagi plant by 40,500 mtpa to reach a total of 75,819 mtpa will lead to a further rise in the topline as well as bottomline.
• Gravita has decided to set up a new wholly owned subsidiary in the US — Gravita Recyclers US Inc — with a capital commitment of $ 50,000. This follows the company’s strong Q1 performance and continuous geographical expansion efforts. According to the management, this expansion aims to enhance the company’s local recycling operations and secure key supply lines in international scrap markets. Securing a dedicated base in the US highlights Gravita’s strategic intent to mature from an Indian recycling firm to a truly global operation and trading power house.

ANALYSTS BULLISH

According to a renowned research analyst, future prospects for Gravita India are heart-warming. The company is forecast to grow earnings and revenue by 22.8% and 28.5% per annum respectively. EPS (earnings per share) is likely to grow by 21.5% per annum. Return on equity (RoE) is forecast to be 20.2% in 3 years. (This analysis was last updated on October 14, 2026.)

• Pointing to growing geopolitical tensions, another well-known research analyst maintains that though near-term volume lags, the long-term growth outlook remains intact. Gravita India’s Q1FY27 EBITDA at Rs 1.09 billion (+9% yoy and 2.5% QoQ) was below market expectations as the company faced higher costs and geopolitical challenges in Q1FY27. The first research analyst quoted here believes that half-year FY 2027 could witness supply chain challenges, but the long-term outlook on recycled material remains favourable.
• Gravita is in expansion mode. It has earmarked capex of Rs 16.8 billion spread till fiscal year 2029.

Prospects for the company’s stock are excellent. In the current depressed market situation, the Gravita stock with a face value of Rs 2 is quoted in the Rs 1,475-1,480 range. Once the war drums in West Asia stop, the stock price could start moving up to Rs 2,000 and above.

– Savyasachi